The British Pound (GBP) edges lower against the US Dollar, retreating from a three-year high, with the GBP/USD pair trading around 1.3510 during the American session on Tuesday.
The AUD/USD pair extends correction to near 0.6450 during North American trading hours on Tuesday from its six-month high of 0.6537 posted the previous day.
Richmond Fed President Thomas Barkin highlighted persistent uncertainty in the US economy, pointing to muted business activity, fiscal drag, and inflation expectations weighing on sentiment. While consumer spending remains resilient for now, policymakers are closely watching the evolving data.
"I was extremely satisfied with the 50% tariff allotment on the European Union, especially since they were slow walking (to put it mildly!), our negotiations with them," United States (US) President Donald Trump said in a post published on Truth Social on Tuesday.
Gold continues to trade within a narrowing consolidation range on Tuesday, following a record-setting rally earlier this year. After reaching an all-time high in April, the market has shifted into a holding pattern characterized by a descending wedge formation, reflecting a tightening momentum.
Durable Goods Orders in the United States (US) declined by 6.3%, or $19.9 billion, in April to $296.3 billion, the US Census Bureau reported on Tuesday.
The Mexican Peso remains firm against the US Dollar (USD) on Tuesday, despite a positive US Consumer Confidence report and a mild recovery in the Greenback against its major peers.
The Japanese Yen (JPY) is losing ground against the US Dollar (USD), retreating from a four-week high of 142.11 reached during early Asian trading hours on Tuesday.
Japanese Yen (JPY) is weak, trading down 0.8% against the US Dollar (USD) and underperforming all of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.
Pound Sterling (GBP) is soft, down 0.15% against the US Dollar (USD) while showing relative outperformance against the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.
China's Gold imports from Hong Kong rose to almost 59 tons in April, nearly three times as much as in March and as high as a year ago, Commerzbank's commodity analyst Barbara Lambrecht notes.
The Canadian Dollar (CAD) has slipped back amid the broader rebound in the USD vs US Dollar (USD). USD gains have taken funds back to the mid/upper 1.37s and largely reflect the rebound in the USD rather than any CAD-negative development, Scotiabank's Chief FX Strategist Shaun Osborne notes.
The oil market is showing strength ahead of the OPEC+ meeting and the production decision due on Saturday by the eight cartel members who voluntarily cut production and are now considering a further significant withdrawal of these cuts in July, Commerzbank's commodity analyst Barbara Lambrecht notes
The US Dollar Index (DXY), which tracks the performance of the Greenback’s value against six major currencies, is tying up some minor gains, trading around 99.25 at the time of writing this Tuesday.
At the beginning of the year, yields were higher, and in the fall of 2023 they were even significantly higher. And at that time, no one questioned the stability of US public finances. US government bond yields and the value of the US dollar have been closely correlated to date.
US Dollar (USD) is likely to trade sideways between 7.1640 and 7.1840 against Chinese Yuan (CNH). In the longer run, downward momentum has not increased significantly, but bias for USD is on the downside toward 7.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Yesterday ECB President Christine Lagarde gave a speech in Berlin. It was about how the euro could possibly replace the dollar as the dominant global currency in the future. The speech is worth reading, Commerzbank's Head of FX and Commodity Research Ulrich Leuchtmann notes.
The Euro extends losses for the fourth consecutive day against the British Pound, weighed by uninspiring Eurozone economic data and dovish comments by ECB policymaker Francois Villeroy.In Germany, the GFK Consumer Sentiment Index has ticked in from last week’s lows but remains at extremely low level
The USD/CAD pair gains to near 1.3760 during European trading hours on Tuesday. The Loonie pair rises as the US Dollar (USD) gains ground due to de-escalating trade tensions between the European Union (EU) and the United States (US).
European Central Bank (ECB) policymaker Robert Holzmann said on Tuesday that “the ECB should pause further interest rate cuts until at least September.”
US Dollar (USD) could edge lower and retest the 142.20 level vs Japanese Yen (JPY); the major support at 141.70 is unlikely to come under threat. In the longer run, risk is still on the downside, but it remains to be seen if USD can maintain its pace of decline.
Crude prices are paring losses on Tuesday as the UK and US markets return from a long weekend on an upbeat market mood. Trump’s decision to delay tariffs on European products has eased concerns about severe damage to global growth and to Oil demand by extension.
EUR/USD trades lower to near 1.1350 during North American trading hours on Tuesday after correcting from the monthly high of 1.1425 posted the previous day.
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